Modems Down, Betting on 3G Boost

The modem industry witnessed a decline in FY 2009-10

, though the industry leaders including Atrie Technology, Bharti Teletech and D-Link witnessed a healthy growth. The overall market size declined by 4.5%. VOICE&DATA estimates that the overall market stood at Rs 340 crore. Last year the industry stood at Rs 356 crore.

Atrie Technology was the market leader with 52.9% market share. The company's revenue from the segment was Rs 180 crore with a growth of 4%. Both Bharti Teletech and Mumbai based D-Link saw a double digit growth. Bharti was the second largest player in the segment with a market share of 23.5%. Growing at a rate of 37.9%, the company's overall revenue stood at Rs 80 crore. Similarly, D-Link grew by 53.8%. The company's revenue stood to Rs 40 crore.

For Atrie Technology, there was growth in the service provider area including BSNL and MTNL, and in other service providers' areas too for WiMax CPE and WiMax backhaul. GSM backhaul and 2G continued to do good business. BFSI; transport including railways, roadways and airline ticketing and freight management system, e -governance and STATEWAN were the other major contributors for Atrie.

Atrie Technology's main orders for FY 2009-10 came from BSNL Phase 5 GSM for south and west India for the back haul of fiber and copper transmission and WiMax CPE. On the other hand, D-Link in the year 2009 introduced low cost ADSL modems like DSL-2640U, Wireless ADSL2+ having four ports Ethernet with routing capabilities. The product was aimed at SMBs for Internet browsing, P2P applications and online gaming.

On the business front, D-Link continued doing business with BSNL franchisees. Few other private service providers have also contributed to the D-Link kitty. The Mumbai based company witnessed over 30% growth in the overall broadband category including ADSL modems and associated network equipments like DLSAM's.

Trends in Modem

Modem technology was positioned to compete with other broadband technologies. Modems continue to be in good demand for high speed data connectivity and new emerging applications. The ADSL2+ technology modem continues to gain popularity in the SOHO market due to its effectiveness to offer a high speed broadband connectivity to SMBs and SOHO consumers.

The newer ADSL models with enhanced chipset like ADSL2/2+ standards provide Internet transmission of up to 24Mbps downstream, 1Mbps upstream.

The newer ADSL models-with enhanced chipsets like the latest ADSL2/2+ standards which provide Internet transmission of up to 24Mbps downstream and 1Mbps upstream-are few of the recent technology additions in this segment.

Modems Down, Betting on 3G Boost

By: VK Singh

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